By Gavin Lower
MELBOURNE--Coca-Cola Amatil Ltd. (CCL.AU) said Wednesday that it expects net profit before significant items to grow 4%-5% in 2012, as weak trading conditions in New Zealand and at its food business hurt earnings growth.
Managing Director Terry Davies said in a statement to the stock exchange that earnings growth had been hurt by around 2% for the year because of a softening New Zealand economy and a high Australian dollar which damages the competitiveness of its SPC Ardmona fruit-processing business against cheaper imports.
Last year the company's net profit before significant items was A$532 million, up 5% on the previous year. The company's financial year ends Dec. 31.
The company, which is 29%-owned by Coca-Cola Co. (KO) and produces and distributes the popular Coke fizzy drink and a range of premium spirits, also said capital expenditure would be around 150 million Australian dollars (US$158 million) for the year.
It said it had bought the non-alcoholic beverage bottling assets of PT San Miguel Indonesia Food and Beverages in Indonesia for A$45 million.
"The acquisition of this large and modern facility is a very important acquisition for CCA as it fast tracks our expansion plans for the Jakarta region," Mr. Davies said.
The company also said it had bought a warehousing facility in Papua New Guinea for A$28 million and had entered a long-term agreement to distribute Rekorderlig cider in Australia from January 2014.
Write to Gavin Lower at email@example.com
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